Aleees Enters Tesla Supply Chain, NT$280 Million Capital Increase Approved for New Plant

(Central News Agency, Reporter Zeng Renkai, Taipei 11th) Lithium iron phosphate (LFP) battery cathode material manufacturer Aleees has entered the supply chain of Tesla Inc. A capital increase of NT$280 million (approximately US$8.6 million) was approved this week. Aleees plans to invest over NT$300 million to build a new production line in southern Taiwan with an annual capacity of 50,000 tons of LFP precursor, with shipments expected to begin in 2027.

Aleees stated today that the funds raised from this capital increase will primarily be used to fulfill contracts with North American customers. However, due to confidentiality agreements with clients, the company cannot comment on customer activities.

According to the prospectus for the capital increase disclosed by Aleees, orders from the North American customer are expected to begin shipping in mid-2027, contributing an estimated annual revenue of approximately NT$700 million. Revenue is projected to further exceed NT$3 billion in 2028, indicating rapid growth.

Aleees is a major manufacturer of LFP battery cathode materials with leading technology. However, in recent years, it has faced intense competition from Chinese battery makers' low prices and large-scale production, resulting in losses for most of the period. Aleees General Manager Jui-Yang Chu previously stated that Taiwan's annual production capacity for LFP cathode materials is only about 2,000 tons, a far cry from China's 4 million tons, making direct competition difficult.

However, analysts point out that with the Chinese government restricting the export of the latest LFP technology starting in mid-2025, including key upstream precursors and cathode materials, and given China's current dominance of the global lithium battery supply, other countries are beginning to consider the security of a 'non-China' battery supply chain for geopolitical reasons. Aleees is one of the few companies outside of China with complete LFP lithium battery cathode material manufacturing technology and patents, and has successfully entered Tesla's supply chain. (Editor: Chang Li-Jen) 1150611